Bloomberg reports that Telecom New Zealand – the country’s largest telecommunications company and second-largest mobile operator – has suspended its dividend reinvestment plan and associated share buyback pending a decision on an investment in faster mobile phone services. According to Wireless Intelligence estimates, approximately 31 percent of its total 2.2 million customer base use 3G services based on CDMA 2000 1xEV-DO technology, whilst only 0.57 percent (22,700) use WCDMA/HSPA technology. However, the company plans to increase investment in nationwide WCDMA/HSPA technology, with CEO Paul Reynolds noting in the operator’s yearly results statement last month that it is “evaluating the further potential of WCDMA at 850MHz.”  

The Bloomberg report this week quotes Telecom spokesman Mark Watts as stating “that process is well-advanced,” although he wouldn’t comment on the potential cost involved nor the timeframe for making an announcement. The operator hopes that investment in mobile services will help it tackle rival Vodafone. Although Vodafone only has approximately 200,000 more total subscribers than Telecom, it has nearly one million WCDMA/HSPA connections. In July Vodafone New Zealand said total spending on its national 3G network will have reached NZ$500 million (US$332 million) by 2010, when it aims to cover around 97 percent of the country’s population. A third mobile network operator – NZ Communications – is scheduled to launch next year but has been plagued by delays.